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Scottish Trust Deed Forum
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Topic starter
12/12/2012 11:28 am
Hi all, just had my house revalued for equity amount as it finishes in a few months and the equity amount has increased to £29,000. I've check around for a re-mortgage or loan but no joy so it looks like I will have to sell my house [:(]
If it sells for less than valuation - which i think it will as it needs a new roof, a new kitchen and new bathroom I assume then that the equity payment is reduced and that's the end of it?
If for some reason it sold over the asking price and after the equity was paid there was say £5000 left that would be mine and wouldn't have to go into TD?
Also after 2nd year my Trustee informed me they were increasing their fees by another 4k and taking a % of the equity as a fee, this wasn't agreed at the start can they do this? I also have made a lot more in monthly payments over the term due to promotions and the money going into the pot might be over the original debt amount and ive been told I'll have to pay 8% interest for each year
It just seems to me I'm selling my house and 1/3 of this money will go on fees [:0]
So many questions i hope someone can advise 🙂
12/12/2012 11:57 am
Hello am123456.
If the house sells for less than the stated equity figure that should still be the end of this for you.
If it were to sell for more than expected your creditors would benefit from an increased dividend.
The most you'll need to pay, including what you have already paid, is the debt total plus interest plus the trust deed fees. Any extra should be returned to you. Do you think the sale of your home would take you near this threshold?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
12/12/2012 1:22 pm
Hi TDA, with the current equity amount and what i've put in with monthly payments its going to be about under £1000 of the threshold, and that's before any fees
12/12/2012 1:59 pm
If I am reading this right it sounds as though you are unlikely to get any money back regardless of whether your trustee adds on another £4k of fees or not. It would really be your creditors losing out and they have the right to query the fees themselves.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
12/12/2012 2:15 pm
How am i not losing out? They are adding on 4k + 12% of equity and if house sells for more than its worth there with be 8% interest per year. Its me that loses out and the company gains as they had added on random fees.
I'm going to lose my house and 7 years of mortgage payments, its me and the creditors losing out and the trust deed company gaining thousands!
Topic starter
12/12/2012 2:41 pm
Sorry misread your post, i thought you were saying it was only the creditors losing out
Its just so frustrating that people get thousands written off and I've actually paid back more or less my debts but because of this I feel i'm being penalised!
12/12/2012 3:21 pm
Hi am123456.
I think the issue here is the perception that trust deeds "write off x per cent of your debts" (as you can read all over the place).
They don't. They write off the amount of the debts (and interest etc) that you cannot afford to pay via monthly contributions and the realisation of assets.
You can query the fees if you wish, as can your creditors.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
13/12/2012 9:35 am
thanks for taking the time to reply TDA & Kevin
13/12/2012 12:20 pm
Can anybody explain why trustees can increase there fees, this happened to me , i sold my house, and the equity went into my TD, fees increesed by nearly 300%, and i was left with nothing at the end, queering fees is a waste of time and effort, and could put you into more debt, they know this,the fees should be capped when you sign on, anybody reading this; be aware of these people, they are the 1st to get there money.
acunningham
13/12/2012 12:34 pm
Hi alex2258.
The usual basis for increasing fees would be that the firm had to conduct work in addition to that which was originally envisaged.
We did have a poster here quite recently who was able to persuade their trustee to reduce the fees somewhat.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
